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India holds firm in US trade talks, eyes EU pact amid tariff tensions

Officials stressed that negotiations with the US are continuing, but India will not compromise in the agriculture and dairy sectors.

Published on: Aug 12, 2025, 04:19:34 IST
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In a key meeting of the Parliamentary Committee on Foreign Affairs, the Foreign Secretary and the Commerce Secretary briefed members on India-US relations and ongoing trade negotiations, sources said on Monday

Regarding the upcoming US delegation visit for trade negotiations, the government indicated there is no change in schedule. (REUTERS)
Regarding the upcoming US delegation visit for trade negotiations, the government indicated there is no change in schedule. (REUTERS)

The government outlined three categories under which the US has been imposing tariffs.

The issues included Global Tariffs - measures applied to all countries, not just India, sector-specific tariffs - designed to attract certain industries to the US, such as automobiles, leather, and textiles and revenue-oriented tariffs - targeting sectors like agriculture and oil for revenue generation.

Officials stressed that negotiations with the US are continuing, but India will not compromise in the agriculture and dairy sectors.

The government is actively assessing the impact of tariffs in consultation with stakeholders, including exporters, and is exploring alternative trade partnerships. Talks on trade agreements with the EU are being expedited, and new agreements with other countries are also under consideration.

On broader ties, the government noted that India-US relations remain strong beyond trade. Recent developments include resolutions passed at the UN Security Council and the QUAD on the Pahalgam attacks, the extradition of Tahawwur Rana from the US, and the designation of TRF as a terrorist organisation. There has been no India-US dialogue regarding Pakistan in the current trade discussions.

Regarding the upcoming US delegation visit for trade negotiations, the government indicated there is no change in schedule. On whether the nuclear threat issue would be raised with Washington, officials deferred to the Foreign Secretary but affirmed that such rhetoric is unwelcome.

Commenting on Prime Minister Narendra Modi's talks with Ukrainian President Volodymyr Zelenskyy following his conversation with Russian President Vladimir Putin, the government noted that if the war ends, 25 per cent of existing tariffs--imposed due to India's purchase of Russian oil--would be lifted. However, India remains focused on addressing the remaining 25 per cent tariff impact.

 
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